MOSCOW (MRC) -- Earlier this month, China’s Zhejiang Petroleum & Chemical Co Ltd launched a 3.8-million-ton-per-year reformer unit, a key processing facility at its new mega refinery and petrochemical complex in east China, the company said on its social media platform, reported Reuters.
The reformer unit, which processes naphtha into aromatics, is the world’s single-largest facility of its kind, the company claimed.
Zhejiang Petrochemical,based in Zhoushan of Zhejiang province, started test runs at a 200,000-barrels-per-day crude oil refinery in May, the company said.
The complex includes a second 200,000-bpd crude unit, a 1.4 million-tpy ethylene and a 4 million-tpy paraxylene plant. All facilites are expected to start operating next year, industry sources said.
As MRC informed earlier, in H1 November 2019, Zhejiang Petrochemical Co Ltd (ZPC) started up its No. 1 cracker in Zhoushan, China, though it is reported that the company is still working to stabilize the operation rate. The cracker has an annual capacity of 1.4 million tons/year of ethylene and 900,000 tons/year of propylene. As reported earlier, the company is also aiming to bring its Phase I downstream PP and PE plants online within 2019. However, the startup schedule is very much depending on the operation of the No. 1 cracker.
The Phase I facility houses a 300,000 tons/year HDPE unit, 450,000 tons/year LLDPE line and a 900,000 tons/year PP plant. Market players are speculating that these units might only come online in Q1-2020 given the large scale of both upstream and downstream production the company is managing.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
MRC